Inverclyde farmers hit out at UK inheritance tax plans

In the October budget, Chancellor Rachel Reeves announced that farmers will have to pay inheritance tax on agricultural property and land worth more than £1m at a rate of 20 percent, when they previously paid none. 

The move prompted a massive demonstration by thousands of  farmers in London on November 19 including TV presenter Jeremy Clarkson.

The UK government says the tax, which comes into force in April 2026, is aimed at wealthy investors who have been buying farms to avoid inheritance tax.

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They insists that the vast majority of British farms - 75 percent - will be unaffected.

However, Neil McIntyre, 32, who runs Shielhill Farm in Inverkip with his father Alistair, disagrees and says there is a public misconception that farmers are well off.

Neil McIntyre  (Image: George Munro) He added: "This will affect all farmers even the small ones or people who rent their land.

"There is no money in a farm, it barely gives you a living.

"There are also the hours that you have to put it.

"There are no farmers sitting with money in the bank.

"All the assets are in the land itself but there are very few windfalls there either.

"No one makes money off farming unless you own a chain of super farms."

At present those who meet the threshold face a tax bill of at least £200,000 if they inherit the family farm.

Neil says many will have to take out a loan or mortgage to pay the tax bill, getting themselves even deeper into debt than they already are.

He is concerned farmers will have to sell off their farms because their family won't be able to pay the inheritance tax and young people will be lost to the industry.

The introduction of the inheritance tax is another blow to Neil's farming business.

Last year we highlighted his concerns over the long term closure of Dunrod Road, Inverkip by Inverclyde Council, because of safety concerns.

There is no sign of the road reopening.

Neil says this is causing him major problems when transporting livestock and doubling journey times for him and his staff.

Another farmer near Greenock, who asked not to be named, said of the proposed tax: "I am not very happy about it and I don't know anyone who is.

"If you have farm that is worth £1million then you are probably working seven days a week and struggling to make a living.

"The only winners in all this will be the lawyers."

Norman Stirrat, 66, who owns Skermorlie Mains Farm near Wemyss Bay, is worried that his three adult children won't be able to afford the inheritance tax when their parents pass away.

(Image: James Manning) Norman, who also runs several caravan parks and another farm, added: "The problem is that most farmers do not have enough extra income to pay inheritance tax.

"The revenue created by any farm business is not particularly high.

"This is something that people were not expecting and were not given a chance to prepare for.

"For the amount of capital invested in a farm the return is very, very low.

"It is simply an asset we are trying to make a living from."

Norman has 2,500 acres and keeps sheep and beef cattle.

He says he is lucky if the business makes a small annual profit.

Norman believes that once you add in all the assets of a farm including animals and machinery then most owners will be over the £1million threshold.

He fears his children could end up with a total inheritance tax bill of £2million once the farms and other assets are passed on by their parents.

Norman added: "Where is the income going to come from to pay the tax?

"This has been sprung on us."

Norman says his father bought Skelmorlie Mains in 1958 and it was where he was brought up. 

He has been working there since 1980.

Norman added: "We had a succession planned for out children and now it will have to be changed.

"There isn't the money to pay inheritance tax and things would need to be sold.

"It is a pretty unjust situation that nobody was expecting."

Inverclyde Councillor Innes Nelson, 67, took over the family livestock farm Chrisswell, near Inverkip, ten years ago.

It only has around 100 acres and is not affected at present by the inheritance tax.

But the former SNP member worries for his five-year-old son if he choses to take over the farm when he grows up and the bill he might be landed with.

(Image: Innes Nelson) Mr Nelson, who now sits as an independent, added: "These are farms which have been in families for generations.

"There is no way the government should be touching them. 

"Farmers are asset rich and cash poor.

"Most struggle to make a half decent living."